Edison International combines 7% rate-base growth and a 5% dividend yield with deep wildfire-driven valuation upside, but the January 2027 Eaton trial makes liability and credit risk decisive.
Overview
Edison International is a California-focused electric utility holding company whose primary asset, Southern California Edison, delivers regulated transmission, distribution, and interconnection services to approximately 15 million people through 5 million accounts. Its natural-monopoly network spans 50,000 square miles and includes 125,000 miles of lines and 1.4 million poles. **The central fundamental driver is a projected 7% rate-base CAGR**, from $47.6 billion in 2025 to $67.9 billion in 2030, supported by $38–$41 billion of 2026–2030 capex and California’s electrification mandates. Management targets 5%–7% core EPS CAGR through 2030, with 2026 core EPS guidance of $5.90–$6.20 and a roughly 5.0% dividend yield. Q2 2026 Core EPS was $1.54 versus $1.18 consensus, although revenue of $4.357 billion missed consensus by $500 million because of lower pass-through purchased-power costs. Valuation is distressed at 7.24x P/E versus a 23.3x utility-sector median, reflecting wildfire risk. **Near-term catalysts are the late-2026 CPUC cost-of-capital review, January 2027 Eaton trial, and potential wildfire-liability reform.**